GEMS Education sets talk in $800 million equivalent two-part notes offering; pricing Tuesday

By Paul A. Harris

Portland, Ore., July 29 – GEMS Education set price talk for its $800 million equivalent two-part offering of seven-year senior secured notes (B2/B/B+) on Monday, according to an informed source.

The deal is coming in tranches sized at $500 million, talked to yield in the 7½% area, and $300 million equivalent of euro-denominated notes talked in the 5% area.

The order books in the United States were scheduled to remain open until the Monday close of business. The final close of books for international investors beyond the United States is scheduled to take place at 5 a.m. ET on Tuesday.

Global coordinator Goldman Sachs International is the physical bookrunner. Credit Suisse Securities (Europe) Ltd. is also a global coordinator.

Citigroup Global Capital Markets Ltd., Emirates NBD Capital Ltd. and HSBC Bank plc are the joint bookrunners.

The notes become callable after three years at par plus 50% of the coupon.

The issuing entities will be GEMS Menasa (Cayman) Ltd. and GEMS Education (Delaware) LLC.

The Dubai-based provider of private K-12 education plans to use the proceeds, along with proceeds from its term loan B, to pay off its existing senior facilities, as well as to finance the acquisition of Bellevue Education, to repurchase certain school leases in Qatar, to fund distributions to holding companies and shareholders and for general corporate purposes.

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